Thank you, Mr. Speaker. For years this government has professed support for renewable energy and concern about cost of living. While enjoying reduced costs from converting our own infrastructure to renewables, we’ve hung communities out to dry. Soaring power costs to ratepayers and drains on tax revenues of hundreds of millions of dollars in subsidies have been the result.
A sad case in point was the Fort Liard Geothermal Project. The Fort Liard Geothermal Project was led by private developer, Borealis GeoPower in partnership with the Acho Dene Koe First Nation of Fort Liard. The federal role was a commitment of $7.9 million, provided that investors could be found to finance the other half.
A third-party review confirmed that the project was technically feasible. Feasibility was again confirmed when the company rigorously and successfully met every regulatory and financial obligation required for a Mackenzie Valley Land and Water Board permit in less than a year. Based on this, a line-up of investors was prepared to fund the other 50 percent of the project, requiring only the customary power purchase agreement from our 100 percent owned Power Corporation.
NTPC and GNWT were aware of the timing and of the existence of the sunset clauses related to the federal funding as well as subsequent timelines required to confirm investment. As a result of NTPC’s procrastination and failure to provide the signed power purchase agreement needed, the federal funding lapsed and the Fort Liard Geothermal Project folded.
To be clear, what was lost here was a 20-year contract for power to be provided at one-half to two-thirds of the cost of the day, a huge savings to the people of Liard, to the NWT power system and to the environment and the loss of local jobs that were to be generated. This travesty was the result of a philosophy of monopoly for power generation and distribution in the Northwest Territories for NTPC with an endorsement by this government, leaving accelerating costs of power accruing to the public.
Is this government serious about exploring renewable energy sources for community benefit, as opposed to just our own government benefit? Where was the direction to this wholly owned corporation to provide a timely power purchase agreement?
Clearly, and shamefully, despite backing by the community, by regulators and investors, by the federal government, the buck stopped with us and we failed our people. How often has this happened across the NWT before without it being profiled in the House? What other opportunities to actually reduce cost have we passed over, choosing instead to remove motivations and spend our millions on hollow subsidies while costs soar?
Borealis Geothermal remains convinced of this project’s feasibility and committed to the Liard project and claims investors are still interested, even without the federal subsidy. Does this government have what it takes to pursue this opportunity?
I will have questions. Mahsi.
